Now I Can See!

1
Now I Can See!

• The economic feasibility of
• Glasses vs Contacts
• Presented and Researched by
• Team 5
• Andrea Ferris and Forrest Hippensteel

2
The Scenario

• A 18 year old, college bound student needs
  corrective lenses
• Assumptions
• Had glasses before
• Initial exam is complete
• Neglecting impact of insurance
• MARR 5
• Consistent Prescription
• Goal
• What is the most cost effective option for the
  next 4 years of college

3
Option 1 Glasses

• Type Lenscrafters
• Costs Frames and Lenses
• Present Value 2 year 428.63, 1 year 836.40

4
Option 2 2-Week Contacts

• Type Acuvue Oasys, 6 pack
• Costs additional exam, contacts, cleaning
  solution, eye drops
• Present Value 1100.97

5
Option 3 Daily Disposable Contacts
Type 1-Day Acuvue Moist, 90 Pack Costs
additional exam, contacts, eye drops Present
Value 1755.02
6
Initial Conclusions

• Using Present Value Analysis
• Glasses are the Cheapest
• 2 year lifetime 428.63
• 1 year lifetime 836.40
• Disposable Contacts 1100.97
• Daily Contacts 1755.02

7
Sensitivity Analysis Frame Cost
8
Sensitivity Analysis Contact Cost
9
Sensitivity Analysis MARR
10
Final Conclusions

• 2 Year lifetime Glasses are the Cheapest
• Disposable Contacts are Cheaper than Daily
  Contacts
• Disposable Contacts are best if
• 1 Year frames cost gt 175
• OR
• Contact cost lt 18/box
• Reasonable MARR and Solution Cost changes dont
  affect decision

11
Resources

• Lenscrafters website www.lenscrafters.com
• MARR Research http//en.wikipedia.org/wiki/Minimu
  m_acceptable_rate_of_return
• User interviews and personal experience